Citigroup to gut its mortgage business

Citigroup Inc. has announced plans to drastically scale down their mortgage business today, according to published reports.

Citigroup Inc. has announced plans to drastically scale down their mortgage business today, according to published reports.
The financial giant plans to reduce its $200 billion portfolio of mortgage loans by 20% over the coming year, while cutting $200 million in costs through a restructuring of its offices.
An unknown number of job cuts are planned, as well as an implied shift to the most secure forms of mortgages in order to hedge risks.
The reduction in portfolio, some $45 billion in loans, will be accomplished mainly by not renewing current loans once they are paid off.
The firm also has announced that they will convert 90% of its incoming mortgage loans into securities, up from 65% now.
The shifts display not only the current belt-tightening seen across the financial sector, but also the desire to hedge bets and avoid risk in an unforgiving and volatile market.